U.S. federal jobs, part 2

Starting Out: For new and budding fraud examiners

Federal positions are broken down into position classification categories on USAJobs.gov. For example, air traffic controllers are GS-2152. In this column, we'll continue our discussion of the job categories that most often contain fraud examination responsibilities and opportunities.

In my column, Uncle Sam wants you (for a fraud examiner job) in the January/February 2015 Fraud Magazine, I discussed the accounting and budget positions, which included accountants, auditors and IRS revenue agents. In the May/June column, I'll discuss the last of the three main areas: investigation and inspection — the most common jobs in the federal government that deal primarily with fraud examination.

Here we'll cover the broadest series of jobs within the government that encompass the management and program analysis — job series 0343. I'll also cover the financial analyst series (job series 1160) and briefly cover some of the information technology (IT) analysts (job series 2210).

Management and program analysts

Management and program analysts (MPAs) primarily assist agency management in evaluating agencies' programs and operations and their productivity and efficiency.

The main duties for a recently posted program analyst for a small office of inspector general (OIG) were:

• Manage and track the status of ongoing audits in a spreadsheet reporting system.
• Review audit reports of independent contractors and grant recipients that are prepared by independent auditors. The program analyst also summarizes recommendations to the assistant inspector general from the audit and then reviews any corrective actions.
• Prepare accurate and timely reports for the inspector general and management; also synthesize large amounts of data. The analyst also drafts the audit section and related schedules for the OIG's semiannual report to Congress and other reports.

Knowledge and skill set

Certified Fraud Examiners make excellent program analysts and program evaluators because they use their specific knowledge of fraud techniques, internal controls, interviewing, report writing and financial procedures to identify concerns and remedies to ensure proper adherence to the rules, regulations and policies of the agency.

According to the U.S. Office of Personnel Management (OPM), other important things that a program analyst should know include:

• The substantive nature of agency programs and activities.
• Specific agency missions, policies, and objectives. 
• Management principles and processes. 
• Analytical and evaluative methods and techniques to assess program performance.

The focus for program analysts is to improve organizational effectiveness and efficiency. Because much financial data might be involved, many of these positions require an understanding of basic budgetary and financial management principles and techniques, federal budget process, federal oversight regulations and procedures, and long-range planning.

OPM states in the series position description, "The work requires skill in: application of fact finding and investigative techniques; oral and written communications; and development of presentations and reports." These are exactly the same types of knowledge and experience gained through the CFE process. Conducting interviews, analyzing financial and operational data to find anomalies, and verifying information are essential skills for CFEs and MPAs.

Read more about these skills in the PDF.

Evidence-based recommendations

Like CFEs, MPAs must review all the available data to report back to management on the conclusions and make any recommendations for fraud detection and/or prevention. Evidence in program evaluations can take many forms, including reviewing policies and procedures, identifying actual operational processes, conducting interviews, examining financial and operational data, and transaction testing.

As one office of inspector general describes its collection of evidence for program reviews: "Using a variety of methodologies, [our Division] often combines extensive field work — encompassing interviews, observations, data collection, and surveys — with analysis of data and policy to document and dissect problems and find solutions. Much of the Division's work results in recommendations to streamline operations, enhance data quality, and minimize inefficient and ineffective procedures."

Students and others interested in federal program management analysis should familiarize themselves with the overarching standards of these disciplines. Researching program evaluation strategies, collecting evidence for program analysis and writing reports are important, especially prior to an interview.

Understanding the Government Accountability Office's (GAO) standards, including these, are particularly important:

• Government Auditing Standards (the Yellow Book).
• Standards for Internal Control in the Federal Government (the Green Book).
• Federal Information Systems Controls Audit Manual.

In June 2013, the GAO also wrote a report on the use of particular strategies to help federal agency managers in everlasting programs and formulating better policy. Read a PDF of the report, "PROGRAM EVALUATION: Strategies to Facilitate Agencies' Use of Evaluation in Program Management and Policy Making" (GAO13-570).

The Bureau of Justice Assistance of the U.S. Department of Justice, which provides millions of dollars in grant money and research funds to academic researchers, policy specialists, and state and local police and corrections agencies to conduct program research and policy development, has an excellent Program Evaluation Guide on its website.

The guide covers planning an evaluation, identifying goals and objectives, measuring activities and outputs (process evaluation), measuring outcomes (impact evaluation), establishing the "activities-outcomes" connection (evaluation experiments) and writing reports of evaluations.

The IT need

As an OIG's recruiting literature states, "Our Program Analysts have strong writing, analytical, research, and computer skills. … Familiarity with information technology is particularly valuable because our Program Analysts often evaluate [our agency's] programs that make extensive use of information technology." Fraud examiners who work at federal agencies increasingly need IT knowledge and skills to conduct successful evaluations, audits and investigations.

Because so much of the evidence is in electronic form on networks and through agency computer systems, CFEs and MPAs need to know the hows, whys and wheres of IT, especially as it relates to data security and integrity and protection of confidential information. CFEs likely will become more involved in data breach investigations and audits to prevent hacks of agency data systems and minimize unauthorized individuals' access.

CFEs who have an interest or experience in the IT field should also explore the Information Technology Management Series, GS-2210. The 2210 series generally involves IT system oversight, development and execution.

Follow the funds

Financial analysts, identified by series 1160, perform analyses and evaluations of financial data, budgets, transactions and financial operations. The OPM statement of the job series details four areas of comprehensive knowledge required by 1160 financial analysts:

1. The theory and principles of finance applicable to the full range of financial operations and transactions involved in the general activities of the various types of business corporate organizations.
2. The financial and management organization, operations and practices of such corporate organizations.
3. Pertinent statutory or regulatory provisions.
4. Related basic economic, accounting, and legal principles.

Loan specialists (GS 1165) and economists (GS 0110) are specifically excluded from this series. Generally, the title "financial assistant" is used for junior or developmental employees at the GS-5 and GS-7 levels, while the title "financial analyst" is used for non-supervisory positions in this series at the GS-9 and higher levels.

Financial analysts might be involved in such typical endeavors within an agency as budget development, fiscal evaluation or revenue/fee disbursement. They might, however, also be involved in some very interesting areas of financial analysis, such as the administration and enforcement of securities laws, the provision of capital or credit for the planning and construction of facilities, the administration and enforcement of labor laws, pension plans and other defined benefit or contribution plans.

Due diligence for government

Financial analysts might also conduct reviews of the financial condition and stability of federal contractors or those who wish to obtain federal contracts. These reviews ensure contractors have the proper financial resources, management competency, internal controls and history to be able to successfully complete tasks. Financial analysts conduct these reviews as part of the government's due diligence efforts and to ensure contracts are awarded to competent, reliable and appropriate businesses.

CFEs conduct many of these types of due diligence reviews in the commercial sector, so the skills and knowledge are equally applicable to the federal government. These can include analysis of financial statements, reviewing business history, management experience, operating capability, and other documents and records to make this due diligence determination.

Another major factor is making sure that potential contractors have adequately determined their need for capital financing so they have adequate financial resources to complete the contracts on time and on budget. Financial analysts use a contractor's financial position, past performance, financial relationships with lending institutions and other factors in this evaluation.

Fulfilling and fascinating

Working for the federal government can be a rewarding career. The work of government employees fulfills a critical component and intersects the lives of the global community.

According to the Partnership for Public Service (PPS), "Most people think that federal government jobs are all in Washington, D.C., but in fact 84 percent of federal government jobs are outside of the D.C. area. More than 50,000 federal government employees work abroad." The PPS's excellent website helps prospective applicants understand the federal environment and the benefits of working for the government.

Financial analysts or program evaluators are consultants to agency management who help them focus on necessary projects or improve their operations. No one work day is ever the same.

For more information, visit www.usajobs.gov.

In the next column, we'll discuss the final major group involved in fraud investigations: the investigators.

Colin May, M.S., CFE, is a forensic financial investigator with a government agency (the views in "Starting Out" are his own) in Baltimore, Maryland.

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